A periodic review inventory model for stochastic demand with two storage facilities
Abstract
In this paper a periodic review probabilistic inventory model for a single item with two storage facilities is developed; one warehouse is owned by the system under considerations (which is referred to as OW) and the other is a rented warehouse (RW). The capacity of OW is W units. Any quantity larger than W is to be kept in RW and are gradually withdrawn in batches of K units. The model determines optimum values of lot-size q and K. An example is given to illustrate the results obtained.
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